Solved

Which Assumption Must Be True When E(e|x)= 0?
A)E(e)= 0 $\sigma$

Question 10

Multiple Choice

Which assumption must be true when E(e|x) = 0?

A) E(e) = 0 and var(e) = $\sigma$ ²
B) e = 0
C) E(e) = 0 and cov(x,e) = 0.
D) E(e) = e|x if x≠0

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